Sigma Broking in 'advanced talks' about sale to third party

London-based Sigma Broking, founded by Matthew Kent and run by Pettit since the start of last year, is said by sources to be in “advanced talks” about a sale to another firm, though the identity of the third party is not known at this stage.

The same sources said Pettit, who was previously the UK head of ED&F Man Capital Markets, has resigned as chief executive of Sigma Broking and is now on gardening leave.

Kevin Costello, the former European chief executive of Prebon Yamane who has been a non-executive director at Sigma Broking since April 2017, is taking over as interim chief executive, according to the same sources.

Founded in 2008, Sigma Broking has grown quickly in recent years, challenging more established and larger brokers like RJ O’Brien, Marex and StoneX.

Sigma Broking became in January 2022 the first new London Metal Exchange category one member in more than 15 years.

Sigma Broking is part of a larger group that includes Sigma Treasury, based in London and Dubai, and Sigma Private Office, a wealth manager run by David Mudie who was Sigma Broking CEO before Pettit.

The futures brokerage industry is consolidating at the moment as higher interest rates and volatility make these businesses more lucrative and attractive to buyers.

StoneX, formerly known as INTL FCStone, agreed in April a $900m (£680m) deal to acquire its rival RJ O’Brien, suggesting the takeover should close before the end of September this year.

Also in April, Hidden Road, a broker specialising in crypto and foreign exchange futures, agreed to sell itself to digital assets firm Ripple for $1.25bn.

Marex, which acquired ED&F Man Capital markets in August 2022, has engaged in a period of rapid growth, partly through bolt-on acquisitions, since its listing on Nasdaq last year.